Transparency and ReportingOur stakeholders want to know what <strong>Starbucks</strong> is doing tobe a socially and environmentally responsible company. Since2001, <strong>Starbucks</strong> has published a CSR Report as part of ourbroader communications efforts to provide transparency onour CSR activities and performance. In preparing our fiscal2006 and previous reports, we have been influenced by theGlobal Reporting Initiative (GRI) 2002 Guidelines, a set ofinternationally recognized sustainability reporting standards.A GRI Index is available on pages 5 and 6.<strong>Starbucks</strong> also reviewed the recently released GRI G3Guidelines in developing this report, which includesspecific guidance for reporting against the GRI principlesfor defining content and quality. The principles, along witha brief description of how <strong>Starbucks</strong> addressed them, arelisted below:Materiality: To determine what topics and indicatorsto include in our report that reflect the company’s mostsignificant impacts and issues of greatest importance tostakeholders, <strong>Starbucks</strong> conducted a materiality assessment,described on page 3.Stakeholder Inclusiveness: We define who our stakeholdersare, describe the measures we took to engage and solicittheir feedback, and throughout this report explain how weare addressing their concerns. More specific informationon our stakeholder engagement efforts is described on theprevious page.Sustainability Context: Discussing our CSR-relatedmeasures and performance in the broader sustainabilitycontext is essential. At the beginning of most sections, weintroduce the specific topics to be covered and explain howthey support our approach to sustainability.Completeness: To provide readers with appropriate contextfor what is and is not covered in this report, we define thescope, boundaries and topics contained in this report onpage 4. Since first publishing a CSR report in 2001, we haveworked to make our report more comprehensive each yearand will continue to do so in the future.Balance: Throughout this report, <strong>Starbucks</strong> has includedmulti-year performance data and provided self assessmentsof our performance. We have also included case studiesand external stakeholder comments as a way of providingmore insight and objectivity about some of the challenges<strong>Starbucks</strong> faces.Comparability: In developing the report each year, weuse our previous reports as starting points. We providefollow-up information regarding any intended plans wepreviously stated and include multi-year performance datawhen possible. Self assessments about our performance arealso included. This enables our stakeholders to compare ourperformance over time.Accuracy: The content and data included in this report havebeen internally reviewed by numerous subject matter expertsand senior leaders at <strong>Starbucks</strong>, and been subject to a systemof internal controls. As described below, external verificationwas conducted by Moss Adams LLP, an independentaccounting and consulting firm. See pages 76 and 77 formore information.Timeliness: At the end of our fiscal year, which ends on theSunday closest to September 30, our goal is to complete andrelease <strong>Starbucks</strong> CSR Report by the date of our AnnualShareholders’ Meeting. The date of the meeting varies year toyear, but usually takes place within six months after the fiscalyear closes.Clarity: Each year we have worked to improve the designand readability of our report in a format that is concise,understandable and user-friendly. We have also reducedthe amount of content covered in our printed report andpresented more information online.Reliability: External verification of the data and statementsmade in <strong>Starbucks</strong> CSR Annual Reports began in 2002,when the company retained Seattle-based Moss Adams LLP,the 12 th largest accounting and consulting firm in the U.S.The selection of Moss Adams met <strong>Starbucks</strong> criteria for ahigh-quality firm that had not worked with the companypreviously, and a firm that could develop a customizedapproach for verifying CSR-related data and content. (Seepages 76 and 77.)S T A R B U C K S A N D C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y 13
External RecognitionSocially Responsible Investments (SRI)There are a variety of socially responsible mutual fundsavailable to investors who choose to invest in companiesthat meet specific criteria in areas covering various social,environmental and economic dimensions. <strong>Starbucks</strong> waslisted on several SRI indices (mentioned below) and includedin some socially responsible mutual funds in fiscal 2006.• Calvert Social Index • Citizens Index ®• Domini 400 Social SM Index (DS400)• Dow Jones Sustainability North America Index (DJSINorth America)• Dow Jones Sustainability United States Index (DJSIUnited States)• Dow Jones Sustainability World Index (DJSI World)• Ethibel Sustainability Index, Excellence Constituent• FTSE4Good Global Index• FTSE4Good U.S. Index• FTSE4Good US 100 Tradable Index• KLD Broad Market Social SM Index (BMSI)• KLD Large Cap Social SM Index (LCSI)• KLD Select Social SM Index (SSI)CSR AwardsWe are proud of the following CSR-related recognition that<strong>Starbucks</strong> received in fiscal 2006. While these honors aregreatly valued and appreciated, we do not view them as endresults but rather as important acknowledgements of ourongoing commitment to CSR and our efforts to date.Multiple-year awards<strong>Starbucks</strong> was ranked 17 th on the list of “100 Best CorporateCitizens” by Business Ethics magazine in 2006. <strong>Starbucks</strong> hasmade this list every year since 2000.<strong>Starbucks</strong> has made Fortune’s list of “The 100 BestCompanies to Work For” eight times. <strong>Starbucks</strong> ranked 29 thon the list in 2006.Single-year awardsThe U.S. Environmental Protection Agency’s Green PowerPartnership list of Top 25 Green Power Partners ranked<strong>Starbucks</strong> sixth for our significant purchase of Green Power.<strong>Starbucks</strong> was recognized as one of 15 employers toreceive the “Secretary of Defense Employer SupportFreedom Award” given by the National Committee forEmployer Support of the Guard and Reserve, a DefenseDepartment agency.<strong>Starbucks</strong> was recognized by DiversityInc in its “Top 50Companies for Diversity” and “Top 10 Companiesfor Latinos.”<strong>Starbucks</strong> Calgary received the “Employer of Persons withDisabilities Award of Distinction” at the Alberta BusinessAwards of Distinction Banquet.<strong>Starbucks</strong> UK was recognized as one of “UK Top 50 BestPlaces to Work” (ranked 34th), awarded by the Great Placesto Work Institute, in partnership with the Financial Times.<strong>Starbucks</strong> was ranked 9th by college students as a “MostDesirable Company to Join,” a listing compiled by Cheersmagazine in Taiwan.<strong>Starbucks</strong> was ranked 25th on Newsweek Japan’s “2006World <strong>Corporation</strong> Ranking 500” list based on sales,corporate social responsibility and return on equity.<strong>Starbucks</strong> was recognized as “Model Company forSustainable Economic Development” by the LuohuGovernment in Shenzhen, China.<strong>Starbucks</strong> UK was awarded a “Big Tick” by Business in theCommunity in recognition of excellence in corporate socialresponsibility, for the Partners in Education program.S T A R B U C K S A N D C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y 14